You cannot use accounts with these banks to pay income tax on TIN NSDL website anymore

• November 17, 2022
• CA Chandan Agarwal's Office

The way to pay income tax is changing. The Central Board of Direct Taxes (CBDT) has directed banks to migrate from TIN NSDL website to e-filing income tax portal for payment of taxes such as self-assessment tax, advance tax etc. Here is the list of the banks that have been moved to new e-filing income tax portal for taxes payment.

If you pay income taxes online, better check if the bank you have your account with has changed/migrated its tax payment facility route. This is because new income tax e-filing portal has started allowing payment of taxes through the service of e-Pay Tax window on the portal itself. Customers of specific banks that have migrated to this system from the TIN NSDL website will now have to visit the e-filing income tax portal to pay their income tax.

Yashesh Ashar, chartered accountant and Partner, Bhuta Shah & Co LLP, says, “As per the directions of the Central Board of Direct Taxes, many banks have to switch over from the OLTAS e-Payment of Taxes facility on the TIN NSDL website to the new Direct Tax Payment System called CPC 2.0 – TIN 2.0 on the new income tax e-filing portal with respect of collection of direct tax through internet banking and over the counter. This is a positive move by the authorities. It allows users to avail the facilities at one portal itself, rather than having to move to different platforms for tax payments. Hence, individuals are now advised to navigate to e-Pay Tax on the new income tax portal to make direct tax payments if they are making payment using specific banks.”

Here is the list of the banks that have migrated to the new income tax portal and are no longer available on the NSDL portal for income tax payments:

a) Axis Bank
b) Central Bank of India
c) ICICI Bank
d) Indian Bank
e) Karur Vysya Bank
f) Bank of Maharashtra
g) Canara Bank
h) Indian Overseas Bank
i) Bank of India
j) Federal Bank
k) Kotak Mahindra Bank

Banks may have informed their customers of this change. ICICI Bank did it by sending an SMS to its customers that said: “Income Tax Department has migrated ICICI Bank to new Tax Information Network version 2.0 for payment of Direct Tax.”

Advantages for tax payer
The new income tax portal has several advantages over the NSDL window. For one, e-Pay Tax offers a wide range of payment options such as debit cards, net banking, RTGS/NEFT, payment gateways (UPI, credit cards) and pay-at-bank counters; the NSDL website allows payment only using net banking and debit cards.

Disadvantages/Charges on tax payment
However, some charges are applicable in certain cases while using e-Pay Tax. Transaction charges will be levied if an individual opts to pay income tax via NEFT/RTGS and uses the payment gateway. If an individual opts for the Federal Bank payment gateway, then 0.85% extra will be applicable if payment is done via a credit card and Rs 5-12 if done through net banking. The NSDL website did not have such charges.

Currently, the TIN NSDL website allows payment of taxes only through certain banks.

If your bank has not moved to the new system, the income tax e-filing portal has an option to direct you to the NSDL window to make the tax payment. It says: “Click here to go to NSDL (Protean) tax payment page for other banks.”

The ones still listed (as on November 14, 2022) on the TIN NSDL website for payment via net banking are:
l) Bank of Baroda
m) HDFC Bank
n) IDBI Bank
o) Jammu & Kashmir Bank
p) Punjab and Sind Bank
q) Punjab National Bank
r) State Bank of India
s) UCO Bank
t) Union Bank of India

The TIN NSDL website also allows payment of taxes via a debit card through these four banks:
a) Bank of Baroda
b) HDFC Bank
c) Punjab National Bank
d) State Bank of India